Intel Forms Netbook and Tablet Product Group.

Intel Corp. has confirmed the formation of a new netbook and tablet computing group and shifted Doug Davis, Intel vice president and general manager of the embedded and communications group, over to lead the effort. The new business unit will develop solutions aimed specifically low-power computers that are vastly different from traditional PCs.

“Netbook shipments will be heading north of 100 million, and we will all soon will find out what kind of market potential there is for tablets and these increasingly popular hybrid designs. It makes sense for us to sharpen our focus on these friends of the PC, and Doug’s experience running a similar and very successful embedded division makes him the right guy to lead the group," said Bill Kircos, a company spokesman, in an interview with the New York Times.

Apparently, the move happened several weeks ago, but was only confirmed officially this week. Ton Steenman, currently vice president and general manager of the low-power embedded products division, will become the new general manager for the embedded computing group.

The formation of new business group clearly shows that Intel understands the differences between traditional computers as well as emerging systems in new form-factors, such as tablets. Clearly, slates require different hardware and solutions than laptops, for example, chips should be much more energy efficient. Specially tailored system-on-chip solutions for tablets should generally increase Intel's chances to win a part of the rapidly growing market of slates.